Agency: The Japanese yen needs to be accompanied by multiple factors

On 29 July, Vincent Chung, manager of the T. Rowe Price portfolio, stated that the Central Bank of Japan was expected to maintain interest rates on Friday, but that it could release an interest rate hike signal faster than previously suggested, about every six months. The joint portfolio manager said: “Our firmest judgement is that the JCB needs to increase interest rates faster.” The market also continues to believe that the pace of policy adjustments at the Central Bank of Japan lags behind the situation. If the Central Bank of Japan accelerates the process of policy normalization, he expects that there will be two additional increases this year. He noted that “a significant and sustained appreciation of the yen may require a more rapid tightening of monetary policy by the Central Bank of Japan, a fall in energy prices and a combined effect of more coordinated exchange rate interventions.”